Evening star. [volume] (Washington, D.C.) 1854-1972, 1887-09-01

Gossip over the Gale % the Express-
cHuns, AND EvsS fu RAnAoAD rssLy. VIII
rHoBABIY FOLLOW.
The sale Of the Baltimore and Ohio Express 70
the United states Express Company. OF which en-.
senator Thos O. Platt Of New Yort n president
which was announced In yesterday srAA. caused
40 little excitement IN financial circles In New
York- Philadelphia. and Baltimore while the
price paid Is not definitely stated, IL Is generally
believed 70 have been q 600 900 cash. and 81 500.
600 in stock OF the United States Company. Tie
sale itself was not considered 80 remarkable.
although IL Is said that the express was the most
profitable OF the Baltimore and OHIO enterprises,
having made profit last year Of 500, 900: but
this action on the part Of the Baltimore and Ohio
managers II was rumored indicated that q sale OF
the telegraph lines the sleeping-car franchises,
and even OF the railroad itself, might soon follow.
the condition OF Affairs 20 be follows:
The full purpo1 OF the transaction was not,
however. diNuged until tonight, when tt waS
stated that the baltimore ana ONO Railroad Itself
dent Robert Garrett II Is now stated that the
| at heavy loss 10 the railroad company. Tho
chief offcials OF the telegraph Company were
drawn n MIRO, Irom the Western Union service at the.
MI ebin, at Chicago 5000 year. Crest
energy has been displayed In extending the telt-
heavy and the business unremunerative Tho
Philadelphia extension has also been q heavy
weight upon the railroad company. IL IL stated
that IL does not pay operating expenses, aud that
altogether the company has 10 meet dencit of q
million year on this score. The general busl-
meas OF the company has mean while suffered and
the condition OF the road bed and equipment de-
Perforated
at Is stated that when Mr.. Garrett went abroad
he endeavored 10 make some financial arrange.
ments To prosecute his plans, and found himself
confronted by combination OF Influential banking
interests who were determined 70 stop the compe.
tition among the trunk lines and telegraph COM
pantes that had been depressing stock values
The syndicate. headed 10y DrexeL Morgan Co,
Pennsylvania Railroads into harmonious re-
lations and which has made IL the present policy
policy OF the Pennsylvania road, controlled the
situation. Mr.. Garretts negotiations with Iyes
and the subsequent Developments aided materially
further loans Among other things II Il stated
that MI Garrett has lost heavily by the failure OF
OF Baltimore, and found his financial ro-
sources Inadequate 10 meet the accommodating OBJ
legations OF his company. The sale OF the Bslu-
more and Ohio express is understood TO have been
forced by the necessity OF meeting heavy obliga-
tons maturing on Monday OF this week The ex-
press company Is said 10 have cleared over 500 600
proilt last year, and was the most available asset
OF the company. II was disposed OF at the sacri-
Ace OF e, 100000. This It Is understood implies
soon as It can be severed from the general Ianiu.
ties OF the company. IL Is now announced that
hr. Garrett has been constrained by the exfgen-
cies OK the situation 70 place himself In
the hands OF the syndicate which negotiated
the terms OF accommodation between the Penn
sylyania and New York Central systems, and
which controls the Reading Railroad. one ot
the conditions IL stated TO be that he shall resign
the presidency OF the Baltimore and Ohio Railroad,
which virtually passes under the control OF the
syndicate, ana viii be managed In harmony with
pennsylvania Railroad Interests. Al the Same
time the way II opened for consolidation of tee-
graph interests, which may eventually include
the cable companies we'll rs the land Mnes iJ
being the object of the powerful financial inter-
ests concerned 10 put an end TO railroad and tale
graph wars. As regards President Garrett per-
sOnally the opinion Is freely expressed that he
may STOP abroad for an Indefinite period. Nothing
u yet mentioned as TO who his successor win
be. but It II understood that IL will be some
prominent railroad man, who will devote his at
tenton 70 the Improvement Of the condition OF the
property"